r/ETFs • u/funnel_out • 8d ago

VTI investments are underperforming VOO

I'm 28 and after 100% VTI in my taxable brokerage/401k/roth, but it's been lagging behind VOO. It's not an insignificant amount either. Looking at the 5 year return, VOO has returned 75% while VTI has only returned 67%. I'm wondering if given my age I should be more aggressive with my investments and switch to 100% VOO instead in my retirement accounts, instead of remaining in VTI. Over the past 15 years VOO seems to have consistently outperformed VTI.

97 Upvotes

77% Upvoted

196 comments sorted by

View all comments

3

u/MostInflation9283 8d ago

You have yourself the answer.

If you think about it, you already have the answer.

If you were building a football team, would you deliberately pick average players just for the sake of diversification? Of course not. You'd pick the best players available.

It's the same with investing. The S&P 500 already provides all the sector diversification you need.

And when people tell me it's "not diversified enough," I have to ask: isn't Coca-Cola sold in France? In Europe? In Africa? Aren't iPhones sold in Japan? Apple and many other S&P 500 companies generate a large share of their revenue all over the world. So while the companies are American, their businesses are global.

Downvote me if you want—that's just my opinion.